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CHAPTER 4.

COMPLIANCE & DEALER OPERATIONS
4.1 Codes and Rules. Codes are statutes or laws and are known as “black letter law.” Any
changes to the codes require action by the Texas Legislature which meets every other year. Rules are
the regulations that the commissions and boards of agencies pass to clarify the laws and set out the
details as to how the law will be administered. Rules are easier to change as they may be presented to
the board or commission at any time. So while the Codes may change only every other year, the rules
may be changing at any time. The rules are considered laws and carry the same weight as a code
provision. A dealer is required to keep abreast of the various laws and the changes that may occur by
attending seminars, reading special mail-outs from the different agencies, and being familiar with the
following codes and rules. This is another reason why it is very important to keep the different
agencies informed as to the dealership's current address.
The specific codes and rules to be discussed in this manual involve the following:
a. Texas Occupations Code. The Texas Occupations Code (formerly the Texas Motor
Vehicle Commission Code) historically has regulated the relationship between franchised dealers and
their manufacturers. Since the Motor Vehicle Division acquired jurisdiction of the independent dealers
and the general dealer law, the Occupations Code has evolved to also include independent dealers and
is applied in transactions involving used vehicles. Leasing of vehicles and the licensing of Lessors
and lessees is found in this Code, as is the direction to regulate advertising. Fines under the
Occupations Code can range as high as $10,000 per violation, per day, of a continuing violation.
b. The Texas Transportation Code. The Transportation Code is a large set of laws involving
everything from motor carriers, driver’s licensing and traffic signals to titling of vehicles. The dealer
law that the Motor Vehicle Division administers is Chapter 503. In this chapter, you will find the
dealer licensing requirements and laws regarding dealer plates and temporary tags. Fines under this
chapter can run from $50 to $5,000 if pled under the criminal penalty portion in §503.094, in addition
to a civil penalty of $50 to $1000. However, for more serious violations of the Transportation Code,
Section 2301.801 of the Texas Occupations Code allows a civil penalty of up to $10,000 for violations
of §503.038(a) of the Transportation Code.
c. The TxDMV Rules. All the rules adopted by administrative agencies in Texas are
compiled in the Texas Administrative Code (TAC). All rules adopted by the Texas Department of
Motor Vehicles Board along with the rules promulgated to administer Transportation Code Chapter
503 are found in Title 43, Chapter 215 of the TAC. These rules detail the requirements of getting a
license, premises requirements and some general operation guidelines. They also set out under what
circumstances metal plates and tags may be used and how to fill out temporary tags.
d. Advertising Rules. All rules promulgated by the Department regarding advertising motor
vehicles are found at 43 TAC Subchapter H, §§215.241-215.271. These rules apply to both new and
used vehicles unless explicitly stated otherwise in the rule. See Chapter 10 on the advertising rules for
more information as to what is required when advertising.

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e. Leasing Rules. In 1995, the Legislature passed a law that amended the Occ. Code requiring
licensing of Lessors and lease facilitators. Rules adopted by the TxDMV regarding requirements for
licenses, records and premises are found at 43 TAC Subchapter F, §§215.171-215.181.
f. Lemon Law and Warranty Repair Rules. Warranty performance obligations are
commonly known as the Lemon Law and which is set out in §2301.601et seq. of the Occupations
Code. The rules that set out how the Lemon Law and Warranty Repair will be administered are found
at 43 TAC Subchapter G, §§215.201-215.210. This is where you will find out how a vehicle qualifies
for repurchase or repair under the Lemon Law and Warranty Repair, and how complaints of
consumers are handled. Section 2301.204 of the Occupations Code covers repair requirements to
motor vehicles with defects that are reported during the term of the existing manufacturers’ warranty
in order to maintain the vehicle in operating condition. These cases, like the Lemon Law cases, if not
settled informally, can be referred to an administrative law judge for hearing and the TxDMV Board
for final decision.
g. Other Laws. Dealers are responsible to many different agencies for many laws on the local,
state and federal level. The Texas Finance Code, the Texas Tax Code and the Deceptive Trade
Practices Act are just a few examples. Cities have zoning and signage ordinances. Some cities require
additional licenses for motor vehicle dealers. Federal agencies such as OSHA and EPA have serious
penalties for violations of emission and work place standards.
4.2 Record-keeping Requirements. Dealers are subject to many different state and federal
agencies record keeping requirements. Requirements for some agencies involve keeping different
documents from those required by the TxDMV for longer periods of time. Dealers are responsible
for complying with all record-keeping requirements.
The TxDMV requires a dealer to keep a complete, accurate record of all vehicle purchases
and sales (retail or wholesale) for a minimum period of 48 months. The current and previous 13
months of records must be kept at the dealer’s licensed location and be available for inspection by a
TxDMV representative. The remaining 35 months of records need not be kept at the dealer’s
licensed location, but must be within the same county and readily available for inspection upon
request of a TxDMV representative.
Records may be kept in an electronic format. Records, like the names, addresses, dates,
VINs, etc. may be kept in a database, and no paper copy is required if they are available for
inspection and are capable of being printed out for inspection by the TxDMV representative at the
dealership location during normal business hours. Original vehicle titles in the possession of a
dealer (not by a lien holder) should be kept in a secure but readily available location near the
dealership if not on the premises. If the original title is kept by the floor-planner, the dealer is
required to keep a copy of the front and back of the title on the dealership premises in its files.
The Occupations Code specifically allows the Department to inspect the books and records
of a license holder in connection with the performance of its duties under the law. An investigator
may show up at the dealer's lot and expect to see the records there or the TxDMV may request
copies of records by certified mail. If the dealer does not respond to the certified mail request
within 15 days or provide the records as requested at the dealer’s lot, a civil penalty or suspension
or revocation of the license may be imposed.
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a. Wholesale transactions. When a dealer sells to another dealer, the seller needs to be sure
he is dealing with a legitimate dealer. A dealer can check the TxDMV database instantaneously to
see if a person is licensed by going to the TxDMV website. An additional way to verify a person is
a currently licensed dealer is to ask for and make a copy of the buyer's current GDN license.
These additional records should be kept:
1) A Purchase Record, Bill of Sale, Sales Contract, or Auction Receipt showing the date of
purchase, vehicle identification number (VIN); name and address of seller and mileage
statement.
2) A photocopy of both sides of the negotiable title after reassigned to the licensed dealer
following a wholesale transaction.
3) Odometer Disclosure Statement if the odometer disclosure is not integrated into the title.
4) The Texas Motor Vehicle Sales Tax Resale Certificate is to be filled out, signed by the
buying dealer and kept in the dealer's sales file. Do not send the completed certificate to the
Comptroller. When the State Comptroller audits your records, the auditor will want to see
this form in your records. A copy of this form (14-313) can be found on page 7-8. (Form
14-313 is available from the State Comptroller’s Office).
b. Retail transactions. The following records for retail transactions should be kept:
1. Retail Installment Agreement, Sales Contract, or Bill of Sale which should include the
date of sale; vehicle description (i.e. year, make and model); vehicle identification number
(VIN); name and address of person purchasing the vehicle; sale price; all other fees and
charges that are the total cost of the vehicle including trade-in, pay-off of trade-in, extended
warranty, insurance, etc.
2. A copy of the Application for Texas Title after filled out and signed by buyer and seller
(Form 130-U). This form may be obtained from the Tax Collector's office, a TxDMV
regional office or from the TxDMV website at www.TxDMV.gov. A copy of this form is
shown on page 6-14, the Tax Collector’s receipt for title application (White Slip). This is an
important document which can prove you did apply for title on a sold vehicle.
3. A copy of the Buyer’s Guide, also known as the “As-is” statement. See Section 4.7.
4. Odometer Disclosure Statement.
5. A copy of the front and back of the negotiable title signed by buyer and seller. Also, the
Power of Attorney (if required to complete the titling process). See more about powers of
attorney in Chapter 6, Titling Vehicles.
6. The TxDMV Form VTR-136, County of Title Issuance, on which the consumer elects
which county they desire to have their vehicle registered in. See Page 6-17.
c. Other Forms. Copies of other forms may be necessary depending on the type of sale and
will need to be kept as a part of the dealer’s records. Most of the forms may be obtained from the
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Tax Assessor-Collector's office or your local Vehicle Titles & Registration office or their respective
websites. VTR forms can be found on the TxDMV website. Forms involving taxes may be obtained
from the State Comptroller's office or its website, www.window.state.tx.us/taxinfo/taxforms/14forms.html.
Commonly used forms are the following:
1. The Dealer’s Reassignment of Title for a Motor Vehicle Form (TxDMV Form VTR41A) should be used if all available assignments on the back of a Texas title are signed
or the negotiable title is from another state or foreign country. See page 6-11.
2. Texas Motor Vehicle Sales Tax Exemption Certificate – For Vehicles Taken Out of
State (Comptroller's Form 14-312 See page 7-7) is used if a vehicle is sold to someone
who claims they are taking it out of the state or the country, whether the transaction is a
wholesale or retail sale. The original must be kept with the sales file with a copy filed
with the Comptroller and a copy to the buyer. Since dealers are required to apply for
vehicle titles, this form is an important record that proves the consumer advised the
selling dealer the vehicle was leaving the state.
A motor vehicle "sales tax" is essentially an ad valorem or use tax. Any use of the
vehicle in the state that is not incidental to leaving the state is going to require the tax
being collected from the buyer. For example, a student who buys a vehicle and wants to
take the vehicle back to his home state for registration at the next school break in two
weeks, is using the vehicle in this state and is not taking the vehicle directly out of the
state after purchase. The student should be charged the tax, and the titling and
registration needs to be performed by the dealer.
The buyer should be advised that it is a felony to claim this exemption if the buyer
intends to register and title the vehicle in Texas. (Texas Tax Code § 152.101)
3. Texas Motor Vehicle Seller-Financed Sales Tax and/or surcharge report, Comptroller
form 14-117 which must be filed monthly by Seller-Financers. Form is available on the
Comptrollers website. See Chapter 7 for more information.
4.3 Consignment Sales. The following records for consignment sales transactions should
be kept in:
1. A written consignment agreement for the vehicle or a power of attorney covering the
vehicle. A written consignment agreement should be completed by the licensed dealer
and made a part of the sales file. A suggested consignment form is found at page 4-30.
2. A copy of the title should be at the dealer's licensed location for inspection by buyer or a
TxDMV representative. It is recommended that the copy of the title be attached to the
consignment agreement.
3. Record-keeping requirements for the actual sale of a consignment vehicle are the same
as those of a retail sale as listed in Section 4.2(b).
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4 Blue Law. but some business practices that in DTPA lawsuits by consumers will also trigger disciplinary action by the department under its statutory authority. etc. There is a common misconception among dealers that if vehicle damage falls below a certain dollar amount.5 Disclosures under Deceptive Trade Practices Act (DTPA).6 New Cars . rebuilt or reconditioned. DTPA lawsuits are based on “misrepresentations” (false or misleading statements). then the damage does not have to be disclosed to consumers.4. Such disciplinary actions can occur before. Vehicle is stolen recovered.7 Used Cars . only that it was made Common areas where dealers have encountered DPTA problems include the following: 1. The representation can be written or oral. during. If a misrepresentation made to influence opinion or action was made to a consumer before the sale of the vehicle. Odometer replaced or is non-operative. A note about flood-damaged vehicles: Weather events can create a large volume of vehicles with flood damage that could be sold to unsuspecting consumers and dealers. . 5. Salespersons may not offer vehicles on a consecutive Saturday and Sunday with the intent to sell a consumer a vehicle on another date. hail damaged. Contracts or other agreements cannot waive the consumer’s rights under the DTPA. The Federal Trade Commission’s Used Car Rule requires dealers to post a Buyers Guide – known as an “as is” sticker – on every used vehicle Page 4-5 . it will show up on the TxDMV website. On the contrary. but not both. the Monroney Sticker must be displayed on the vehicle. Electrical equipment deficiencies. 3. Failure to do so will subject the dealer to possible state and federal civil penalties. Dealers may choose to be in operation on either Saturday or Sunday of a given weekend. Mechanical deficiencies. 4. If a vehicle has a Texas flood-damaged title brand. the dealer may be in violation of DTPA. 4. It does not matter that the misrepresentation was made unknowingly. No law or court decision in Texas supports this dollar limit exemption. a salvage vehicle. The enforcement division does not sue dealers under the DTPA. Mileage exceeds mechanical limits. 4. or after a DTPA lawsuit by the consumer. Dealers must follow the Blue Law. flood damaged.“As is” Buyers Guides. 6. 2. True miles are unknown. the dealer is subject to DTPA action. 4. if damages of any dollar amount are not disclosed. which prohibits dealers from selling or offering to sell motor vehicles on consecutive Saturdays and Sundays. When a franchised dealer displays vehicles for sale.Monroney (MSRP) Sticker.

If one buys a car “as-is” and the car breaks downs minutes later. The Guide tells consumers: (1) Whether the vehicle is sold with a warranty or “as is”. (3) To get all promises in writing. that promise should be written on the Guide. “As-is” means that the buyer is assuming any risk that the vehicle is defective. if the Guide says the car comes with a warranty and the contract says the car is sold “as-is. (5) How long the warranty is enforceable. IF A DEALER CONDUCTS USED CAR DEALS IN SPANISH. What is the deductible. (2) a curb weight of less than 6. Warranties. (7) To have the car inspected before buying and (8) To keep the Buyer’s Guide for reference after the sale.” the dealer must give the consumer the warranty described in the Guide. The dealer may attach it to a side window or place it under a windshield wiper. It may be removed for a test drive. the repair is the buyer’s responsibility and not the dealer’s. including: 1. When a dealer offers a vehicle “as-is.000 pounds. (2) What percentage or repair costs a dealer will pay under the warranty. The rule includes light-duty trucks. What percentage of parts and labor costs does the warranty cover? 2. the box next to the heading “Warranty” must be checked and that section of the Guide must be completed. This means it must be in plain view and both sides must be visible. b. a. The sticker must be prominently and conspicuously on or in a vehicle when it is available for sale. As is – No Warranty. (2) any vehicle sold for scrap or parts if the dealer submits title documents to the appropriate state authority and obtains a salvage certification. Warranty. Exceptions to the Rule include (1) motorcycles. These are available from the same sources as the English versions. if any? 3. (6) The major mechanical and electrical systems on the vehicle as well as some of the major problem problems that consumers should look out for. and vehicles that have (1) a gross vehicle weight rating (GVWR) of less than 8. A SPANISH LANGUAGE BUYER’S GUIDE MUST BE DISPLAYED. The Guide must show any agreed changes in warranty coverage. (4) To keep the Buyers Guide after the sale. The Buyer’s Guide (Guide) may be hung from the rear-view mirror inside the vehicle or on a side view mirror outside the car. or (3) agricultural equipment. The Guide also becomes part of the sales contract and overrides any contrary provisions. For example.displayed for sale. including consignment vehicles. What systems are covered? For how long? Page 4-6 . light duty vans. but it must be replaced as soon as the test drive is over. or (3) a frontal area of less than 46 square feet. A copy of this form is on page 4-34. If the box is checked but the dealer promises to repair the vehicle or cancel the sale if the consumer is not satisfied. and also does not necessarily avoid disciplinary action by the TxDMV for misrepresentations made to the purchaser. “As-is” does not prevent a dealer from being liable under the DTPA. If a vehicle is offered with an express warranty.500 pounds.” the box next to that disclosure on the Guide must be checked.

b. law enforcement is aware that the TxDMV only issues one Dealer’s Plate. c. but strongly suggested that the buyer sign the guide for protection of the dealer.pdf or in Spanish at http://www. Additionally the Dealer Plate may also be displayed on vehicles that are used for personal use by the dealer. the dealer may apply for metal dealer's license plates (Dealer’s Plate) for the vehicle if it is of the type the dealer is licensed to sell.gov/bcp/edu/pubs/business/autos/bus13. family or employees. Dealer’s Plates may be used for the same purposes that a Dealer’s Temporary Tag can be used such as demonstration test drives. Instead of obtaining regular metal plates through the county tax office for a vehicle that the dealer owns. More details about the Buyer’s Guide can be obtained from a dealer’s guide at the FTC website at http://www. (2) the title must be assigned into the dealer’s name. Service contract. If a vehicle is offered with a service contract. the dealer must give the buyer the original or a copy of the Buyers Guide at the sale. On page 4-36 there is a very informative brochure that is reprinted from the FTC’s library that gives you even more information on the federal Used Car Rule.ftc. d. the box next to the words “Service Contract” should be checked. It is not required. Though Texas law generally requires plates on the front and back of vehicles.ftc. See the chart on page 4-31 for a quick reference to dealer plate usage. if any? If the dealer and the consumer negotiate changes in the warranty.gov/bcp/edu/resources/forms/buyers. The Guide must reflect all final changes.ftc. The guide is available in English http://www. Required Disclosure. c.gov/bcp/edu/resources/forms/s-buyers. and (3) Dealer’s Plates may be displayed on independent dealer service or work vehicles such as a vehicle carrying a load (such as a dealer's service vehicle used to haul parts or inventory back and forth). Vehicles used for towing and Page 4-7 .pdf or toll-free at 1-877-FTC-HELP. the changes must be written on the Guide. 4. Information on the window form overrides any contrary provisions in the contract of sale. One Plate Issued.8 Metal Dealer’s Plates." Upon completion of a sale. The dealer must put the following disclosure in all used car sales contracts: "The information you see on the window form (Buyer's Guide) for this vehicle is part of this contract. Most dealers purchase Dealer’s Plates upon the renewal of their license. Uses of Metal Dealer License Plates. A dealer who is licensed to sell only cars may use his dealer plate only on a car and not on a motorcycle or trailer. Only one Dealer’s Plate is issued and the plate should be displayed only in the rear license plate holder of the vehicle.4. Also. any vehicle with Dealer’s Plates must: (1) have a current inspection. operates. or permits to be operated on a public street or highway in the state.shtm. These Dealer’s Plates expire on the same day as the dealer's General Distinguishing Number and the full fee must be paid regardless of the date of the application for the plates. Taping or propping up the plate in the rear window is not allowed. Expiration of Dealer Plates. a. What manufacturer’s warranty still applies.

will be voided by the TxDMV. Any dealer who sells more than 200 vehicles in a year may have unlimited plates. independent motorcycle dealers. utility trailer or semi-trailer dealers. Vehicle identification number (VIN). Rental or lease vehicles. independent mobility vehicle dealers. If a dealer is selling less than 50 vehicles a year. If a dealer needs even more plates than allotted under the rule. 2.9 Metal Plate Limits. 3. The log must contain: 1. The law requires a dealer to maintain a record of all metal dealers’ plates issued to that dealer and each vehicle assigned a license plate. A light truck is not considered a laden commercial vehicle when mounted with a camper unit or when towing a trailer for recreational purposes. A wholesale dealer may get one additional plate upon proof they are regularly and actively engaged in the business. Dealer’s Plates. Franchised or independent travel trailer dealers. they are entitled to an additional 1 plate. A sample of a plate log is found on page 4-32. a franchised motor vehicle dealer may obtain a total of 30 plates. a franchised motorcycle dealer may get a total of 10 plates. independent motor cycle dealers. Name of the person in control of the vehicle. independent motor vehicle dealers. Independent motor vehicle dealers. Dealer-owned vehicles loaned to schools. not accounted for. Wholesale dealers may have a total of one plate.transporting other vehicles. Metal Dealer’s License Plate Log. franchised or independent travel trailer dealers. Wholesale dealers may have one plate. and 4.139 for dealers to obtain additional plates upon proof of sales. those selling 50 – 99 vehicles may obtain 2 additional plates. and independent mobility vehicle dealers are limited to two for the first year. New applicants for franchised motor vehicles and motorcycles are limited to five for the first year of their license. Page 4-8 . 4. Wholesale dealers may not apply for waiver of the dealer plate issuance restrictions. must be available at the dealer’s licensed location for review by a TxDMV representative during normal working hours. Assigned Metal Dealer’s License Plate number. Dealers are limited in the number of plates they may order depending on the type of license issued and the number of vehicles sold. as well as the titles for all vehicles assigned a metal license dealer’s plate. There are provisions under the plate limits rule found at 43 TAC §215. those selling 100 – 200 vehicles may get 5 additional plates. and utility trailer or semi-trailer dealers are eligible for a total of 3 plates. in accordance to the number of vehicles they sell. d. The dealer’s log. a request for waiver of the plate limits may be submitted stating why the additional plates are necessary to the continuation of the applicant’s business. Make of the vehicle displaying the Dealer’s Plate. or Any boat trailer owned by a dealer that transports more than one boat. Upon renewal.

4. No Page 4-9 .4. After a plate is reported as missing it is no longer valid. reconditioned. Vision 21 will be accessed through the TxDMV website at https://vision21. or (2) convey the vehicle or cause the vehicle to be conveyed: (A) from one of the converter's places of business in this state to another of the converter's places of business in this state. or (E) to road test the vehicle. supplemental buyer's temporary tags. and emergency temporary tags for each type of vehicle the dealer is licensed to sell. Entry of false information into the Internet based system may subject the user to revocation of access. Under the new Internet based system called Vision 21. 3. (C) from the state line or a location in this state where the vehicle is unloaded to the converter's place of business. and/or criminal prosecution.gov/login/login. Dealers and converters are required by law to have Internet access at their place of business to connect to the temporary tag database. Converter's Plates are attached to the rear license plate holder of vehicles. dealers who hold a GDN license may issue dealer temporary tags. or serviced. Name of the person in control of the vehicle. initial buyer's temporary tags.txdmv. (D) from the converter's place of business to a place of business of a franchised motor vehicle dealer. The selling dealer may attach a buyer's temporary tag to that vehicle or the purchasing converter may display a converter's temporary tag or Converter’s Plate on that vehicle. Converter's Plates may be displayed only on the type of vehicle that the converter is engaged in the business of assembling or modifying.11 Temporary e-Tags. A converter must maintain a record of each Converter Plate issued to that converter that contains: 1. A converter may issue converter temporary tags only. and 4. the TxDMV civil penalties or license suspension.aspx. repaired. These plates expire annually on the same day as the converter's license. Metal Converter's License Plates (Converter’s Plates) may be used only by the converter or the converter's employees on unregistered vehicles to: (1) demonstrate the vehicle. The converter's record must be available at the converter's location during normal working hours for review by a representative of the department. Assigned metal plate number. modified. 2. or cause the vehicle to be demonstrated. Internet-down temporary tags. Vehicle identification number (VIN). to a prospective buyer who is a franchised motor vehicle dealer or an employee of a franchised motor vehicle dealer.10 Metal Converter's License Plates. Converter metal plates that cannot be accounted for will be voided in the dealer's record and reported as missing to the department within three days of the date that the discovery is made. Year and make of the vehicle to which the metal plate is affixed. the selling dealer must remove the dealer's temporary tag. (B) from the converter's place of business to a place where the vehicle is to be assembled. When an unregistered new motor vehicle is sold to a converter.

D. From the point of purchase by the dealer to the dealer's place of business. reconditioned. All printed information on a temporary tag must be visible and may not be covered or obstructed by any plate holder. 5. All tags must be printed or completed in black ink. 2. B. Demonstrate the vehicle or cause the vehicle to be demonstrated to a prospective buyer. From one of the dealer's places of business in this state to another of the dealer's places of business in this state. Homemade tags are not permitted. A dealer who holds a wholesale motor vehicle auction GDN may display its dealer’s tags on any vehicles that are transported to or from the licensed auction location by a bona fide employee or agent of the auction. b. All temporary tags that are not of a water-resistant material must be sealed in a 2 mil clear poly bag that covers the entire tag and must be displayed in the rear license plate holder of unregistered vehicles. 3. E. a. Dealer Temporary Tags (dealer’s tags) may be used by the dealer only to: 1. A vehicle on the streets or highway with a dealer tag is exempt from state inspection requirements. C. Format. From the dealer's place of business to a place where the vehicle is to be repaired. Page 4-10 . Use the vehicle in parades. Dealer tags may be displayed only on the type of vehicle for which the general distinguishing number is issued and for which a dealer is licensed to sell. To road test the vehicle. Use by a charitable organization. Convey or cause the vehicle to be conveyed: A. or F. Cardboard or cardboard backing material for temporary tags is no longer required except to prevent any paper tag from curling up in the wind. From the state line or a location in this state where the vehicle is unloaded to the dealer's place of business. Display in the rear windows is not allowed. or serviced. Use on vehicles loaned to customers whose vehicles are being repaired. Dealers and converters must issue a temporary tag with the information obtained from the state database (Vision 21). Dealer’s Temporary Tag (formerly known as the black tag). 4. Paper tags in bags should be secured with either double-sided tape on back of bag.temporary tag may be placed on a vehicle without this specific number generated by the Vision 21 database. From the dealer's place of business to a place of business of another dealer. or by tacking down within a plate holder to keep the tag from flapping up in the wind.

A dealer’s tag can be issued for any length of time up to 60 days. When an unregistered vehicle is sold to another dealer. A vehicle bearing a dealer tag is not considered to be a laden commercial vehicle when it is towing another vehicle bearing the same dealer’s tags. Courtesy cars with signs on the vehicle. day. Rental or lease vehicles. or Any boat trailer owned by a dealer that transports more than one boat. A dealer’s tag may be issued by a dealer to a specific vehicle or to a dealer's agent who is authorized to operate a motor vehicle owned by the dealer. is consigned from one dealer to another. only one tag per vehicle at a time may be issued. May not be displayed on dealer service or work vehicles or a laden commercial vehicle. the selling dealer must remove its dealer’s tag. A dealer who issues a dealer’s tag to a specific vehicle must ensure that the following information is placed on the tag: (1) the vehicle-specific number from database. Dealers should make an effort to guard the dealer’s tags. (3) the vehicle identification number (VIN) of the vehicle. day. the vehicle must display the temporary tag of the dealer to which that vehicle was consigned. In this instance. A dealer who issues a dealer’s tag to an agent must ensure that the following information is placed on the tag: (1) the agent-specific number from the database. and both vehicles are being conveyed from the dealer’s place of business to a licensed wholesale auto auction or from a licensed wholesale auto auction to the dealer’s place of business.x x x x x x x A dealer’s tag may not be used to: Operate a vehicle for the personal use of a dealer or a dealer's employee. and (2) the month. no sale has taken place and the proper tag to use on the vehicle is the dealer vehicle-specific tag. and year of the tag's expiration. The purchasing dealer may display its dealer’s tag or dealer’s plate on the vehicle. In the case of a vehicle specific tag. Vehicles used for towing and transporting other vehicles. If a vehicle. and year of the tag's expiration. Page 4-11 . not in dealer inventory. Dealer-owned vehicles loaned to schools. Sometimes a dealer will allow a customer to take a vehicle with just a signed bailment agreement. Such tags may be stolen and used by criminals to prevent identification of vehicles used in crimes. (2) the year and make of vehicle. and (4) the month.

Only one Buyer’s Tag may be issued. make. (2) the year and make of vehicle. then a Buyer’s tag can be used. model. Lienholders are required to release liens within 10 days of payoff. A dealer must provide a buyer's temporary tag receipt to the buyer of each vehicle to which a Buyer's Tag is issued regardless of whether the tag is issued in the ordinary course of business or is an Internet-down or emergency tag. The dealer must instruct the buyer to keep a copy of the receipt in the vehicle until the vehicle is registered in the buyer's name and metal plates are affixed to the vehicle. The dealer must ensure that the following information is placed on a buyer's tag that the dealer issues: (1) the vehicle-specific number obtained from database. (6) the name of the issuing dealer and the dealer's license number. and vehicle identification number (VIN) of the vehicle sold. (5) the date of the sale. (3) the vehicle identification number (VIN) of the vehicle. The dealer must place a Buyer's Tag on any new or used vehicle sold by the dealer. and (7) the buyer's name and mailing address. the dealer should notify the TxDMV of the lienholder’s tardiness and then the dealer should obtain for the buyer a 30-day permit from Page 4-12 . (4) the expiration date of the tag. color. The dealer may print the image of the receipt issued from the database or construct the form using the same information. The receipt must include the following information:(1) the issue date of the buyer's tag. A temporary buyer's tag (Buyer’s Tag) may be displayed only on a vehicle that may be operated upon the public streets and highways and for which a sale has been consummated. Buyer’s Temporary Tag (formerly red tag). body style. If the dealer has paid off a lien and cannot obtain the release of lien from the lienholder. If the dealer is an out-of-state dealer and does not have dealer tags. Buyer's Tags are valid for a period not to exceed 60 calendar days including the date the vehicle is sold and may only be displayed on a vehicle actually sold by the dealer.Dealer Temporary Tag – Authorized Agent Tag Dealer Temporary Tag – Vehicle Specific Tag c. (3) the vehicle-specific tag number. and year of the tag's expiration. except for a vehicle sold in a wholesale transaction in which the purchasing dealer places its own dealer temporary tag on the vehicle. and (4) the month. (2) the year. day.

VTR which cost $25 and require liability insurance to be shown. or (E) to road test the vehicle. to a prospective buyer who is a franchised motor vehicle dealer or an employee of a franchised motor vehicle dealer. or (2) convey the vehicle or cause the vehicle to be conveyed: (A) from one of the converter's places of business in this state to another of the converter's places of business in this state. A vehicle being conveyed while displaying a Page 4-13 . reconditioned. A temporary tag is temporary registration and must be entered into the state database and the $5 fee collected whether a temporary tag is actually put on the vehicle or not. off-road motorcycles and salvage vehicles. Since all sales must be registered in the Vision 21 database.39 for more information about plates to owner). This fee is paid to the Tax Assessor-Collector at the time of titling and registration. the temporary e-Tag must stay on the vehicle as the sale information will not be available in the RTS database for 48 hours during which time the metal plates will not be recognized by law enforcement. modified. (B) from the converter's place of business to a place where the vehicle is to be assembled. Converter's Tags may be displayed only on the type of vehicle that the converter is engaged in the business of assembling or modifying. The same holds true for those dealers who take the title application immediately and obtain plates to put on a vehicle before the buyer picks up the vehicle. Converter's Temporary Tags. If a dealer intends to transfer plates from the buyer’s old vehicle. Exempt agencies are the only exception to collecting the $5 fee. d. repaired. Supplemental temporary tags are no longer allowed. (C) from the state line or a location in this state where the vehicle is unloaded to the converter's place of business. The buyer’s tag is the only tag that requires a fee. this fee must be collected and paid for each sale made regardless of whether a tag is put on the vehicle or not. or cause the vehicle to be demonstrated. Inform the buyer that until the vehicle is registered. Prospective buyers who are employees of a franchised dealer or a converter may operate a vehicle displaying converter's temporary tags during a demonstration. These vehicles are not allowed to be driven on the roads. $5 fee for Buyer’s Tag. or serviced. Converter's Temporary Tags (Converter’s Tags) may be used only by the converter or the converter's employees on unregistered vehicles to:(1) demonstrate the vehicle. (D) from the converter's place of business to a place of business of a franchised motor vehicle dealer. the dealer may put the plates on the vehicle and put the buyer’s tag over the metal plates (See Section 4. There is a $5 fee charged to the consumer for the temporary registration evidenced by the e-Tag. Buyer’s Temporary Tag e. The only vehicles that do not require issuance of an e-Tag are ATVs.

the selling dealer may attach a Buyer's Tag to the vehicle or the purchasing converter may display a Converter's Tag or Converter Plate on the vehicle. and (4) the month. A converter who issues a Converter’s Tag to a specific vehicle must ensure that the following information is placed on the tag: (1) the vehicle-specific number from database. Converter's Temporary Tag f. Advance Numbers. day. A dealer may obtain an advance supply of specific numbers in order to issue Buyer's Tags when the dealer is unable to access the Internet. and year of the tag's expiration. Page 4-14 . (2) the year and make of vehicle. Internet-down Buyer's Temporary Tags.converter's temporary tag is exempt from vehicle inspection requirements. The Internet-down Buyer's Temporary Tag must be in the format as described in Section 4. Converter's Tags may not be used to operate a vehicle for the converter's or a converter's employee's personal use. When a dealer is unable to access the Internet at the time of sale. (3) the vehicle identification number (VIN) of the vehicle.11(c) above. When an unregistered new motor vehicle is sold to a converter. the dealer must complete and sign the dealer's copy of the buyer's receipt form and enter the required information on the sale into the database not later than the close of the next business day that the dealer has access to the Internet. A Converter’s Tag may be issued by a converter to a specific vehicle or to a converter's agent who is authorized to operate a motor vehicle owned by the converter. including the date the tag is issued. and (2) the month. and year of the tag's expiration. Converter’s Tag must show its expiration date valid for a period not to exceed 60 calendar days. day. A converter who issues a Converter’s Tag to an agent must ensure that the following information is placed on the tag: (1) the agent-specific number from the database.

13 The 30-Day Permit. In the instance of a sale occurring and a dealer using one of the Internet Down tags.00 and showing of the consumer's financial responsibility (liability insurance). the saddle mount method. Each motor vehicle being transported using the full mount method. 4. should only use the trailer GDN to log sales of trailers. off-highway vehicle or self-propelled machine). and there is no issue with a lienholder.14 Other Restrictions On Tags And Plates. Many times it is not the dealer's fault that a title has not appeared. 4. Failure to do so will keep a dealer from getting additional tags and is a violation that could result in an enforcement action. the dealer must complete the receipt forms by hand. §503. These records become part of those records required to be kept by dealers/converters for theTxDMV inspection.12 Logs for the Temporary Tags. may have a dealer's or converter's temporary tag or a buyer's temporary tag. A franchised dealer may only use temporary tags and metal dealer license plates on used vehicles and new motor vehicles for which they are licensed to sell. Licensees who have more than one license should be careful to use the proper license when issuing an e-Tag. Any dealer who uses an Internet tag must report the vehicle information not later than 24 hours after the time that power or communication is restored. Assigning Vehicles to Internet Tags. trailer dealers who have other retail GDNs to sell used vehicles. not their vehicle GDN or their motorcycle GDN.. affixed to that vehicle. Different License Types. whichever is applicable. For example.068(d). The permit is available from the local TxDMV office upon payment of $25. h.e. Temporary tags are no longer required to be logged with the exception of the Internet Down tags. give one to the buyer and keep the dealer's copy of the receipt in their records. If the vehicle being transported is unable to qualify for registration because it is of a type that is prohibited from operating upon the public streets and highway (i.Internet-down Buyer's Temporary Tag g. the tow bar method." Page 4-15 . a tag may be displayed that states in bold letters "For Off Highway Use Only. the dealer usually can keep the buyer happy by obtaining a 30-day permit. A chart that summarizes for dealers the uses and prohibitions of plates and tags can be found at page 4-31. or any combination of those methods in accordance with Transportation Code.15 Transported Vehicles. 4. Any time the dealer cannot get a title transferred to a buyer within the 20 working days from the date of sale. 4.

An Auctioneer licensed by the Department of Licensing and Regulation must conduct the auction in accordance with the Texas Auctioneer Law. card before conducting business.4. The auctioneer’s name and license number must appear in any advertisement. giving information about the dealer’s financial condition and that of the dealership.16 Special Exception for Auctions. These dealers do not take assignment until vehicles are sold through their auction but must still transfer the titles to the purchaser before the 21st day after the sale. The dealer/owner may be able to take one guest. not the public may attend the auction. 4. The most common auction procedures observed by the TxDMV are: (1) All representations or guarantees are that of the seller. (6) Dealers may be able to preview vehicles before the auction begins.D. not the name of the company that is conducting the auction. A commercial motor vehicle with manufacturer's license plate attached may not carry a load. Only licensed dealers. Some franchised dealers have a wholesale auction license and hold regularly scheduled auctions and invite dealers to bring their vehicles to the lot for sale to other dealers. It is not legal for several dealers to get together and hold a public auction on one of their lots. Sometimes auctions will provide a ferry service for dealers to ferry vehicles to and from the auction for dealers. A dealer going to an auction for the first time will generally be required to fill out an application. This is legal.19 Wholesale Auctions. Be prepared to present the original of your dealer license for verification. Most auctions will provide the dealer with a picture ID and a list of the auction’s procedures. (3) Dealers must register with the auction and obtain an auction I. Instead of registering a new vehicle that a manufacturer or distributor intends to test on a public street or highway or to loan to a consumer during warranty repair to a consumer's vehicle. A dealer may sell his own inventory by way of an auction held on the dealer's licensed lot. which must be held only at the licensed location to the highest bidder. the manufacturer may apply for manufacturer's license plates for the vehicle.18 Public Auctions. nor can a dealer lend its GDN to an individual. however. Only a person who possesses a wholesale motor vehicle auction license may hold a wholesale or dealer-to-dealer auction. The auction may use buyer’s tags on those vehicles which they have bought. A dealer should contact the different auctions in the area and inquire about the auction’s particular requirements. but the auction must be advertised in the dealer's name. 4. Out-ofstate dealers may attend if they hold a valid license in their home state. This is selling off site which is prohibited by the Transportation Code. (5) The auctions are for licensed motor vehicle dealers and their authorized agents only. 4. The hours may vary at each auction so check with the auction that you plan to attend.20 Wholesale Auction Procedures. Some dealers promote themselves as a public auction and hold regular auctions to sell to the public from their licensed lot. Page 4-16 . (2) All transactions are between buying and selling dealers. (4) Some auctions may allow a dealer to establish a line of credit. 4. taken assignment on and are selling for themselves at the auction. auctions are allowed to use their own dealer tags even though the vehicles are not in the auction's name.17 Manufacturer’s License Plates. this person may not buy a vehicle (check with the auction on bringing a guest). A dealer may not take customers to an auction to buy a vehicle. Most wholesale auctions have their own procedures and guidelines. In this instance. A wholesale motor vehicle auction may use dealer’s tags and dealer plates.

Once a dealer is awarded the bid in an auction.148. Some wholesale auctions have their own forms for agent authorization. i. Under the Dealer Agent Rule.] The auction should have a buyback policy if the auction cannot get the title to the buyer within the 21-30 working-day period. arbitration may be available at the auction. The Dealer Agent Rule found at 43 TAC §215.The auction will announce the condition of the vehicle as told to them by the seller. and (3) Title is released to the auction. and the auction releases the title to the dealer. flood damage. The title must be reassigned directly to the purchasing dealer.22 Dealer Agents. but must deliver the titles to the dealer at his dealership. In most cases. Once a dealer gives such written authority. [Note: Titles are not reassigned to the auction. If a dealer buys a vehicle and believes it was misrepresented. an agent may not pay for a vehicle in cash as all transactions must be in the name of the dealer using the dealership checks. the vehicle is released to that dealer.23 Motor Vehicle Shows and Exhibitions. Further. or the title may be a salvage title. 4. This may be done verbally or through the use of a light system. red. If a motor vehicle has a salvage title or is deemed a total loss. to indicate the condition of the sale. Several steps must occur before the dealer can take possession of the vehicle and sell it to a retail consumer: (1) The dealer’s draft must clear. or marked as a reconditioned vehicle. but also with the TxDMV because that dealer has sold a vehicle without a title and has failed to timely apply after a sale for a title. Check the auction arbitration policy. The general rule is that only new motor vehicles may be shown or exhibited away from the licensed premises and then only with the written Page 4-17 . (2) Lien holder and/or selling dealer is paid. missing emissions. Dealers should check with each auction regarding the different categories of the light system. green and yellow. etc. sometimes the title is lost. both the buyer and the seller must hold a salvage dealer license. Dealers are responsible for the actions of their employees and agents. there is a 21-30 working-day policy in getting the title. The TxDMV strongly advises dealers to wait until they have received the title before they sell that vehicle. After the vehicle is sold.21 Getting a Title From the Auction. auctions and other dealers may not give the agent the title to vehicles. or cashier’s checks drawn on the dealership accounts. a dealer must give anyone dealing with his employees or agents in a wholesale situation. drafts through the dealership financial entity. The dealer’s authorization will be valid until either the termination of that dealer’s license or until the dealer revokes the authority in writing. The dealer who sells a vehicle through the auction and has not provided the title in a timely manner would also be in violation of selling a vehicle without the title. This could include units that have frame damage.e. A dealer who has sold such a vehicle before receiving the title is likely to be in trouble with not only the buyer. These forms will take the place of the required letter on dealership letterhead if the form contains all the requirements of the rule. sets out what is required in the letter of authority. Under the Dealer Agent Rule. 4. frame damage repair. the agent may buy and sell vehicles at auctions and to other dealers in the name and under the auspices of the dealer’s license. a letter of written authority of that agent. broken odometers. 4. Some auctions may have a separate “damaged and disabled” sale.

New Motor Vehicles. Under state law. trucks. then the dealer making application must obtain waivers from any dealer(s) located physically closer to the event location.112 of the Texas Administrative Code. 2. motor scooters. livestock. a. It is important to know whether or not the vehicle type being entered may be sold during the event. All other types of motor vehicles. neighborhood vehicles and recreational off-highway vehicles in motor vehicle shows. however. The location of the show will be considered the market area of the closest dealer for each licensed line-make being entered. watercraft and semitrailers) may be approved in motor vehicle shows. motorcycles. as well as trailers. for example. Forms are located online at the TxDMV website. RV Shows – When three or more RV dealers are approved for participation in a show that qualifies under Chapter 215. Special provisions in the law for sales of ambulances. all-terrain vehicles. Exhibitions – A static display of motor vehicles in which one dealership participates. forms must be received by the TxDMV at least 30 days before the show to be approved. and promoters of motor home shows. must meet the specific regulations governing the specific type of vehicle. as well as towable recreational vehicles. a new Ford Mustang displayed at the local airport. motorcycle/motor scooter. fire trucks and busses. When there is a mixture of vehicle types in a motor home show. the presence of vehicles is prohibited. Qualifications for Approval and Participation in a Motor Vehicle Show or Exhibition All dealers. There is no provision in the law for used motor vehicles to be displayed in a show or exhibited away from the licensed premises. Dealers may not sell or offer to sell new motor vehicles such as cars. including some association-sponsored events. As described below. submitting the waiver(s) with the Page 4-18 . There are exceptions under the law for certain types of non-motorized vehicles like used trailers. There are three types of motor vehicle events where motor vehicles may be approved for participation: 1. the event is considered an RV show where dealers may sell new motor homes. For unusual exhibitions. sport utility vehicles. No selling is permitted and personnel are not present. but approval will not extend past the renewal date of a license. Exhibitions may be approved for one day or more. 3. licensees are urged to call or write the TxDMV well in advance of any show or exhibition to ascertain if they may participate in that particular event. b. permission from the TxDMV may be obtained to have personnel present. c. the vehicles which cannot be sold are required by the TxDMV to post signage on the vehicles indicating they are not for sale at the event. there are many different rules for the different types of licenses held and the vehicles that can be entered in an exhibition or show. Motor Vehicle Shows – Motor vehicle shows may include a variety of vehicle types. Dealers of used motor vehicles may be approved for participation in a show. Used Motor Vehicles. must complete the appropriate TxDMV authorization forms. Some nonselling shows and exhibitions may be self-permitting. If the dealer is not the closest dealer. to provide contact information for their dealership and to advertise the various services they may provide. To be absolutely sure of all requirements. These regulations are for the sale of motor homes only.permission of the TxDMV. motor homes and trailers (boat. cargo. unless it is a motor home show.

Waivers must accompany the application for participation. Approved automobile dealer associations may submit a list of members in lieu of separate applications. MAY attend their units on Sunday. Untimely off-site show or exhibition requests. neighborhood vehicles. e-mail or by mail. d. f. and MAY discuss finance options. Under the law. however. MAY NOT enter into contracts. Self-Authorization forms will not be responded to by the Department. all-terrain vehicles. the TxDMV will simply refrain from approving or disapproving the application for show or display. four tickets for admission to the show must be provided to the TxDMV so investigators may enter and monitor compliance. recreational off-highway vehicles. If admission tickets are required. Each dealer that participates must be the closest dealer to the show site or have a signed waiver from any dealer(s) located closer than the prospective participant. MAY quote a price on their units on Sunday. trailers or emergency vehicles are being entered into the event.application for participation to the Department. new automobiles. Forms Required for Shows or Displays. but MAY NOT close sales or finalize a sale. representing 3 different lines in the show. The Licensee Participant Application should be utilized if an applicant is unsure of the types of vehicles being entered in an event or when they know towable recreational vehicles. No dealer located outside of a 70 mile radius of the show site representing the same line can participate without written permission of all like-line dealers located within the 70 mile radius of the show site. Special Rules for Motorhome Shows. participants must determine the type of form to be utilized. No exceptions for submitting an application past the statutory deadline required by law will be made by the TxDMV. Depending on the type of show or display. The TxDMV website has information and forms available for downloading for shows and exhibitions. Page 4-19 . Dealers must leave MSRP stickers on the vehicles as required by Federal law when participating in events. Dealers of motor homes MAY open their units on Sunday. The Licensee Participant Application is designed for events with a mixture of vehicle types being entered – those vehicles approved for sales and those never approved for sales at events. motorhomes may be sold at approved shows. but there must be at least three motor home dealers. however. If the TxDMV receives a complaint. Be sure and check this site and read the provisions carefully. The show may not last longer than 6 days. AND may not enter into letters of intention to contract. applicants may call the Department to verify receipt. and all participating dealers must suspend motor home sales on the same day if the show extends over a consecutive Saturday and Sunday to remain in compliance with the blue law. If a request is not timely and no other provision of the law would be violated. Forms for participation may be submitted by fax. trucks. e. then the TxDMV will investigate the matter. REMEMBER – the Licensee Participant Application form is for events where some vehicle types may be approved for sales. All motor home shows in the same county must be scheduled at least 90 days apart unless specific permission has been given for good cause. The dealer’s attempt to file an untimely request will be considered in imposing sanctions arising from any complaint for not obtaining the TxDMV show or exhibition approval in advance. motorcycles and motor scooters are never approved for sales in events. Self-Authorization forms are designed for events where ALL PARTICIPANTS are prohibited from making sales.

A dealer should obtain a copy of the driver’s license. The rules also require dealers to notify the department when a vehicle is sold for export. Trailers. Such a notice is found on page 11-3. When a franchised dealer sells a new vehicle.” The stamp should be placed on the front of the title where it is not covering up any information and should also be placed on each blank reassignment form on the back of the title. Page 4-20 . This rule was passed at the request of dealers. Location of the Show. j. The rule is known as the “Foreign Buyer Rule” and is directed at foreign dealers and buyers who buy vehicles in Texas on the pretext of exporting to Mexico and other countries. the dealer is required to provide the consumer the requisite Lemon Law Notice. 4. a. vehicles from the visiting licensee must have visible and clearly stated signage posted on the vehicles indicating they are not for sale at the location. Advertising a Show. The rule was worded to apply to sales to any person claiming to buy vehicles for exporting. These copies should become part of the dealer’s sales file.25 Selling to Foreign Buyers Rule. Fire-fighting vehicles (those vehicles meeting the description in the Occupations Code Chapter 2301. It is designed to give the TxDMV one more tool to reduce curbstoning. Many of those Texas dealers along with a group of Tax Assessor-Collectors along the border proposed the procedure to the TxDMV staff that then wrote the rule and presented it to the Board. See Page 4-36 for a sample of the stamp and where to stamp a title. the TxDMV advertising rules. There must be at least two different trailer dealers at the show to qualify for this type of event. The content of this form is prescribed by the TxDMV and should be given to the consumer at the same time the buyer signs the sales contract. Stamping the Title. When approved for participation. or other picture identity of the buyer confirming the foreign residence. This notification consists of checking the “vehicle for export” box when requesting a buyer’s e-Tag through the Vision 21 system. but instead illegally sell the vehicles on this side of the border in unfair competition with Texas dealers. A dealer should obtain a rubber stamp containing the dealer license number and the words “For Export Only. h. passport. Fire-fighting Vehicles and Ambulances.24 Lemon Law Disclosure on New Vehicles. Trailers. both new and used.002 and are licensed as a fire-truck) and ambulances may also be sold at shows when approved by the Department. 4. i.271. b. Verifying Identity of Buyer.g. All advertising of any motor vehicle show or exhibition must comply with 43 TAC §§215. may be exhibited or shown and sold at shows that are regularly scheduled events. c. which can be found on line at the TxDMV website. Notifying the Department. Any dealer who sells motor vehicles to foreign buyers are required to verify the identity of the buyer and stamp the title with the words "For Export Only" and the selling dealer's or auto auction's General Distinguishing Number showing the vehicle as an exported vehicle.241 – 215. Licensees are generally discouraged from exhibiting vehicles at another licensees licensed location to inhibit illegal sales and the perception by the public that visiting vehicles may be purchased or serviced at the location where they are not licensed for sales.

2005.4. emblem or other insignia that is not authorized by law and that interferes with the readability of the letters. If a license covers more than one location then a copy of the original license may be displayed in the additional locations. including a sales tax affidavit. An open title is like a blank check. A dealer may not file a false or forged tax document. Page 4-21 . the license numbers. All licensees must display their license in a manner that makes the license easily readable by the public in a conspicuous place in the office of each place of business. known as an “open title. including an affidavit making application for a certified copy of a title. Customers will not be happy with the free plate holder you furnished if they pay a $200 fine because the plate holder is illegal. including a certificate of title or manufacturer’s certificate. Failure to do so may result in the failure to receive important mail from the TxDMV such as license renewals or important notices about changes in the law. Keeping Open Titles. d. including a certificate of title or manufacturer’s certificate. b. 4.038.29 Trailer Dealers and VINs. holding or delivering an open title is a violation and a very risky way to conduct business. 4. TxDMV has outlined the procedure for obtaining a trailer VIN in a Registration and Title Bulletin to the County Tax Assessor-Collectors dated September 2.15 (Licensing) about amending the license because of moving. or other original design feature of the plate. decal. Care should be taken when dealers affix plate holders to a sold vehicle that the edges of the plate holder do not obscure the name of the state. Misuse of plates or tags. Not assigning titles. While this is not mandatory at this time. A dealer may not fail to take assignment of any basic evidence of ownership. With the advent of Vision 21. A dealer may not use or permit the use of a metal dealer’s license plate or a dealer’s temporary tag on a vehicle that the dealer does not own or control or that is not in stock and offered for sale. for a vehicle the dealer acquires. 4.” Receiving. it behooves trailer dealers to protect their customers’ interest in the trailers they have bought by providing an identifying VIN on the trailers. A dealer may not falsify or forge a title document. A person may not attach an illuminated device. for a vehicle the dealer sells. This bulletin can be seen on page 4-34 of this section. A dealer may not fail to assign any basic evidence of ownership.28 Moving the Dealership. 4. The TxDMV is to be advised within ten (10) days of any move.038: a. This may become mandatory in the future so all trailer dealers need to become familiar with this procedure. Filing a false or forged document. Falsifying or forging documents. or number on the plate or the name of the state in which the vehicle is registered. sticker. c. See §3.26 Displaying the License. the department wants to start collecting VINs on trailers.27 License Plate Holders. adding a new location or going out of business. e. All licensees are required to keep the department advised of their most current address. The following are specific violations found in the Transportation Code §503.30 Specific Violations Under Transportation Code §503.

i. Civil penalties can range from $50 to $10. business hours. This includes all requirements as to signs. A person whose GDN is canceled under this chapter must surrender to a representative of the department each license plate. in denial of the application and possibly could result in a civil penalty. could incur additional penalties and revocation of licenses from this agency. . phones. Wholesale transactions will count towards the required five (5) sales. Dealers are not allowed to sell vehicles from anywhere but their licensed premises. sticker or receipt of a person who does not comply with this subsection. Off-site Sales. leases.000 per violation per day. or using the dealer location for illegal purposes are examples of misuse of a license. which is the practice of selling vehicles away from a dealer’s licensed location. The department may deny an application for a license. A dealer must provide satisfactory and reasonable evidence that the person is regularly and actively engaged in business as a wholesale or retail dealer within 30 days after a demand is made by TxDMV. a false response to the felony question or a designation of a false place of business. those dealers who fail to properly report and pay state sales taxes or vehicle inventory taxes. office requirements. Failing to maintain qualifications for GDN. Misuse of license. allotted spaces. j. The department will cancel a dealer’s GDN if the dealer obtains the number by submitting false or misleading information.f. Although the TxDMV does not collect taxes. The initial requirements to get a license must be maintained throughout the license period. a serious violation has occurred. Failing to Report or Pay Taxes. impose a civil penalty or place on probation a person whose license has been suspended or reprimand a licensee for any of the reasons set forth in the Occupations Code. revoke or suspend an outstanding license. Refusal to provide evidence of being in business. the dealer must bring the bond back to the full amount immediately. Misuse of a license involves any use of the license for purposes other than that specifically contemplated under the dealer law. Curbstoning. Lending license numbers to unlicensed entities to buy or sell vehicles. l. Making Material Misrepresentations on Applications. Texas law now requires tax appraisal districts to turn in to the TxDMV the names of any dealers who either fail to file the annual VIT declaration and monthly statements or do not sell five vehicles within the calendar year. Not Remaining Regularly and Actively Engaged in the Business. tag. Such violations could result. This also includes keeping the security bond in full amount at all times. If a person misrepresents a fact on any application to the department. Dealers are also subject to Page 4-22 . h. k.10 for more information on the bond. temporary cardboard tag. The department will direct any peace officer to secure and return to the department any plate. (43 TAC §215. sticker and receipt issued under this chapter not later than the 10th day after the date the GDN is canceled. If a claim is made on the bond and paid.136) Dealers are strictly prohibited from curbstoning. whether it is a false statement of ownership. g. See Section Licensing Section 3. Those persons who make fewer than five (5) sales per year will have their license challenged. at the minimum. A person whose GDN is canceled automatically loses any benefits and privileges afforded under Texas Transportation Code Chapter 503 to the person as a dealer. etc.

Dealer has 20 working days to provide the buyer any necessary forms to register in their state. Records from the prior 35 months may be kept either on the licensed site or off-site within the same county. it is not a defense that the buyer has not come up with the tax. Rules require records to be kept for at least 48 months.23 of this manual. It is critical that any change of address be promptly reported to the TxDMV in order to ensure that dealers are provided with any and all necessary notices that could affect your operations. m. but not producing those records when a representative appears at a dealership is even more serious. In that instance. There are only two valid defenses to this violation. Failing to keep records at all or incomplete records is a serious violation. The second defense is if the dealer has promptly paid off the lienholder of the vehicle but the lienholder has failed to issue a release of lien within 10 days of the payoff. the dealer has the right to rescind the contract. any change in the licensed entity. Most information is requested by the TxDMV through certified mail. The most common complaint received from consumers is they have not received their plates or title to the vehicle within 20 county working days of the purchase. A Seller-Financed sale allows 45 calendar days to apply for title. If a dealer has sold a vehicle without ascertaining where the title is. Exceptions to this are the permitted shows and displays discussed in Section 4. In addition. Not keeping records is a serious violation. As stated prior. Further.penalty if they aid and abet curbstoning by selling vehicles to persons who practice curbstoning.13 for more information on the 30 day permit. Dealers now have 25 days to pay off a lien on a trade-in once they have the vehicle and proper paperwork to pay the lien. Failure to apply for title within 20 county working days of the date of sale. This should have been covered in the down payment before the vehicle was released to the consumer. The first defense is if the consumer has misrepresented their credit history on a credit application. o. The Tax Assessor-Collector offices have been very cooperative in turning in paperwork to the TxDMV that has been filed by the consumer who bought a vehicle from a dealer. fax or email. Dealers are required to apply for the title and registration and not give the paperwork to consumers. If a dealer fails to Page 4-23 . If the lienholder has failed to issue a release of the lien to the dealer after payoff. Exception: If a consumer is taking the vehicle out of state immediately. Failing to Notify the TxDMV of Change of Address. physical or mailing address must be reported within 10 days of the change. n. ownership. Incomplete or No Records. Not responding to request for records. Giving the title work to the consumer. p. The current and immediately preceding 13 months must be available for inspection at the dealer's location. the dealer should notify the enforcement division of the TxDMV of such non-compliance so the dealer will not be held responsible.” See Section 4. then he is responsible for purchasing the 30-day permit for the consumer until the dealer can locate and transfer the title. q. This is known as the “lienholder excuse. then a dealer should have the consumer fill out the Comptroller’s Sales Tax Exemption Certificate for vehicles taken out of state. This form is kept in the dealer’s sales file in case of an audit. title and license fees. It is not a defense to this violation that the title is held by a prior owner or the title is lost. lack of insurance on the part of the buyer is no longer an excuse since dealers are no longer required to provide proof of financial responsibility of the buyer.

which are items set out in the bailment contract. Dehorsing. Failing to Pay Civil Penalties. The buyer has an option to cancel the sales contract before credit is approved. u. This fraudulent practice consists of selling and delivering a consumer a car after signing a Retail Installment Contract and then calling the consumer back into the dealership to sign a new contract with higher interest. If a dealer wishes to employ this practice. but the general state of records overall. 2. title frauds and fraudulent sales of reconditioned vehicles. The buyer can cancel with full refund and return of trade-in if financing is not approved in accordance with the terms described in the purchase order. This permission is given very seldom due to the nature of the safety hazard involved in allowing cars to obstruct the view of oncoming traffic. In all of these instances. The buyer’s liability in case of cancellation is limited to rental. and are told their trade-in has already been sold. If a dealer wishes to inquire as to written permission. The Office of the Consumer Credit Commissioner has approved a form that contains three elements: 1. which should be entered into instead of a Retail Installment Contract. it is a violation and the agency representative may travel to the dealership to inspect not only the requested information. t.respond to this request. Dealers are specifically prohibited from parking or displaying vehicles on the right-of-way adjacent to their dealership premises unless the governing body having jurisdiction of the easement. s. excessive mileage and use. This practice happens a lot when a dealer wants to tie the consumer to a sale but is unable to verify credit in a timely manner. Dehorsing is done in conjunction with a spot delivery and occurs when the consumer refuses to sign a new contract and demands back their trade-in. also known as a conditional sale and delivery agreement. there are special contracts such as a bailment contract. These contracts make it clear to the consumer that the deal is not final. thus forcing him or her into the new contract or a vehicle of lesser value. the dealer should call the local TxDOT office. Parking on the Right-of-Way. r. right-of-way. One sure way to lose a license permanently is to refuse or neglect to pay any civil penalties assessed against a licensee by the department. 3. Forgery or Fraud. the perpetrator has made representations that have induced someone to buy a vehicle that he or she would not have purchased but for the fraudulent representations. higher payments or to put more money down. floor-planner fraud and consignment fraud. which usually go hand in hand with these activities. v. Spot Deliveries. Use of right-of-way property that is part of the state highway system may only be authorized by a lease agreement entered into with the Texas Department of Transportation (TxDOT). This encompasses rollbacks. Also in this category are credit fraud or commercial fraud. Fraud is also cited when a dealer files a false tax or title document. or driveway expressly consents to such use in writing. Page 4-24 .

Besides the criminal penalties. arranges or offers to arrange a transaction involving the sale of a new motor vehicle. No person.34 Brokering. denial. for a fee. Page 4-25 . or probation. The definition of a broker is a person who. Dealers are strictly prohibited from fraudulently tampering with an odometer to reduce the number of miles indicated on the instrument.000. is considered brokering.000. Texas law prohibits the brokering of motor vehicles among persons who are not licensed motor vehicle dealers. unless exempted by the Transportation Code as noted in Section 3.33 Violating Any Law relating to a Motor Vehicle Sale. Therefore.32 Unlicensed Sales. This is a federal and state law with serious criminal penalties. a person could be permanently denied a dealer license upon such a conviction.3 of this manual.84-215. suspension or revocation of their license and GDN by the Department. A fine not to exceed $1. some individuals found guilty of numerous practices of odometer tampering or related fraud have been sentenced to up to nine years in prison and fined more than $400. Arranging or offering to arrange a transaction has been defined to include soliciting or referring buyers for new motor vehicles.4. Under Texas Occupations Code. A fine not to exceed $2. or other valuable consideration. any person who violates any law relating to the sale. Under the federal statute. he or she is subject to punishment by: x x Confinement in the county jail for not less than 30 days or more than two years. Pursuant to Transportation Code §727.85 for the full text of the broker rules. 4. or Both the confinement and fine. See 43 TAC §§215. 4. may sell or offer to sell motor vehicles without having a GDN and/or franchised dealer license for the purposes of engaging in the business of buying. This general prohibition is usually applied to those dealers who willfully defraud a consumer.000. Franchised dealers may be sanctioned for offering to sell or selling or transferring new motor vehicles for which they are not franchised. 4. selling or exchanging motor vehicles. including purchasing wholesale vehicles or participating in auto auctions. financing or insuring of motor vehicles is subject to civil penalties. This does not include an auxiliary odometer designed to be reset by the operator to record mileage on trips. odometer means an instrument for measuring and recording the distance a motor vehicle travels while in operation. commission. the "transaction" of referring a customer to a dealer for a fee.002. distribution.31 Odometer Rollbacks. If a person is found more than once to be guilty of odometer tampering. Dealers should exercise extreme caution when purchasing used cars with low mileage and inspect them for signs of odometer tampering. a person who commits such an offense is subject to: x x x Confinement in the county jail for not more than two years. For the purposes of this law.

Bird-dog fees. 3. There are three locations where a vehicle may be titled: 1. When a vehicle is taken in on trade or is sold in a casual sale. x Do not violate the advertising rules. but the law changed and it is now the buyer’s choice. Used motor vehicles.36 Choice of County to register Vehicle. x Do not advertise or promote their plan in the manner that implies that the buyer. 4. which would include all licensed franchised and independent dealers. Dealers should NOT have this form prefilled. x Allow all dealers to participate on equal terms with no restrictions as to size. Referral fees are also known as bird-dog fees and are considered to be broker fees. b. Representatives and distributors and their bona fide employees are likewise exempted from the brokering prohibition. Note the definition of a new motor vehicle under the Definitions section. the company may operate legally if they: x Do not offer exclusive market areas. The only persons allowed to broker new motor vehicles are franchised dealers or bona fide employees of a franchised dealer when acting on behalf of the franchised dealer. Page 4-26 . d. The broker rules also set out how a referral company can operate without violating the broker rules. 4. The county where the vehicle was sold. c. County of Title Issuance and is found on page 6-15 with a Spanish version on page 6-16. This form requires that the BUYER fill in the county of choice. x Charge all participants the same fee that is not based on a per referral basis or other transaction-related fee. In summary.35 Vehicle Transfer Notice. location or line-make. The county where the lienholder resides. dealers can offer to fill out this form for the customer. Consequently. receives a special discounted price that cannot be obtained unless the customer is referred through that program. This form is VTR-136. x Do not set or suggest to the dealer any price of vehicles or trade-ins. The brokering of used motor vehicles is allowed by those licensees possessing a valid GDN. as a customer of that program. Vision 21 made this very easy to do with a simple form that may be filled out and submitted to the department electronically. The county where the buyer resides. in their own handwriting. While the law is not mandatory at this time. In the past the dealer chose where he wanted to register the vehicle. Delivery of this notice to the department puts a note in the RTS system advising queries that this vehicle is no longer owned by the person to whom the system reflects as the title owner. a used vehicle dealer may not accept a fee from a franchised dealer for referral of a new motor vehicle customer. the vehicle owners now have the ability to notify the department that they no longer own the vehicle. New motor vehicles. Referral companies. 2.a. print it out and hand it to them to mail or file it direct electronically. There is a simple form that the buyer fills out and signs at the time of sale indicating where they wish the vehicle to be registered. There is no charge for this service.

(See previous Section 4. the dealer may put the plates on the new vehicle and put the buyer’s temporary tag over the metal plates. 2010.25) The rule originally was passed to apply only to foreign dealers. unless customer is transferring a set of license plates to the newly-purchased vehicle and the additional $5 plate transfer fee would apply. it doesn't affect any registration on the vehicle as the registration stays with the vehicle. a driver’s license. Handling titles. truck-to-truck). e-tags. the plates must be replaced due to loss of plate reflectivity. This is because if the consigned vehicle does not sell. a. The identification document must be issued by the jurisdiction where the buyer resides and may consist of a passport. The customer needs to understand the tag should not be removed until the dealer sends them the registration sticker indicating that the plates are now registered with the new vehicle. can be found by entering the VIN in the V21 database for a buyer’s tag and the registration information will appear. the time left on the registration. When the dealer takes the license plates and sticker off the vehicle. not out-of-state.4. differentiate a “foreign” sale. If the plate age is 7 years or more. For vehicles taken on consignment. 2010 expiration. The past owner of the vehicle may keep the plates or they may wish to have the plates put on the vehicle they buy to replace the trade-in. Currently the Plates to Owner Law is limited to cars and light trucks one ton or less.37 Transfer of Vehicle Registration and Removal of License Plates. Metal Plates should be removed from a vehicle taken in on trade along with the registration sticker. then the dealer will title the vehicle and transfer the registration to the new vehicle. If the owner of the vehicle wishes to have the old plates put on their new vehicle. no charge replacement plates will be issued. then the sticker should be removed at that time. the dealer should deliver the plates to the owner. if any. as applied in the For Export Only rule. The customer is charged the same fees as current. First. then the dealer just gives the owner the old plates and the registration sticker. as pertaining to out-of-country sales. Out-of-state and out-ofcountry procedures differ slightly from the norm when a dealer sells a vehicle that will be leaving the state. If there are no plates to transfer. but not the sticker. Export Sales. This rule sets out the requirements for dealers handling a sale to a foreign buyer.147. the dealer must return the vehicle with the plates and sticker to the owner. a national identification Page 4-27 . a consular identity document. the plates may be transferred to another vehicle. but dealers can benefit from learning to recognize the differences and train employees to handle these matters accordingly. If the owner does not buy a vehicle.38 Special Handling of Out-of-State & Out-of-Country Sales. The first requirement is to obtain identification of the individual who is buying the vehicle. 4. If the vehicle is sold. Either way. the person that purchases the 2005 Honda will receive new plates and sticker (no charge) at the time of title and will still have Aug. but was amended in February of 2010 to include all foreign buyers. If a 2005 Honda is traded in and the registration expiration date is Aug. As a courtesy to the buyers. Plates can only be transferred to same classification vehicles (Car-to-car. If a dealer buys a vehicle from an auction and it does not have plates or registration sticker on it. and taxes can be confusing. If the plate age is 6 years or less. The Export Sales rule can be found in the Admin Code at 43 TAC §215. retail and wholesale. the plates should be removed and stored.

we suggest a vehicle-specific dealer temporary tag valid for only a few days. pay special attention to the questions: Is this vehicle to be exported?* Yes No Will this vehicle be titled/registered out of Texas?* Yes No c. While vehicles being towed by other registered vehicles. the Comptroller’s form. It is completed whether the vehicle is going to another state or another country (see form on page 7-7). It is important to make a copy of the document to be kept in the records of the dealer. Wholesale Sales. The key is the transport method. When preparing the buyer’s tag in Vision 21. regardless of whether the vehicles are driven out of Texas or hauled by any means. foreign address. A buyer’s tag must be affixed to a vehicle being driven out of the state. Note the new form and the requirements printed thereon to send the completed form to the Comptroller and advise the buyer you are doing so. if the transaction is a wholesale transaction.certificate or identity document. b. a tag must be logged in the system and given to the transporter or placed in the vehicle. and transported vehicles are not required to have a tag. date of birth. E-Tags are another aspect of vehicles leaving the state. If the vehicle is “cargo. The stamp must be at least 2 inches wide and have the words “For Export Only” with the dealer’s license number (See example on page 4-36). then no tag is required. The question always arises: What if the Mexico dealer has no dealer tag or plate? Though the rules do not provide for this situation and law enforcement may stop the driver. photograph.” being pulled by a registered vehicle or carried by a transport. or other identification issued by the jurisdiction where the buyer resides that is able to be verified by law enforcement including the name of the jurisdiction. So it is important to let your out of state dealer know he needs to bring a dealer plate or temp tag from his state to put on the vehicle if he intends to drive it back to his home state because the selling Texas dealer may not put his dealer temporary tag on the sold wholesale vehicle. Finally. the buyer’s full name. The $5 tag fee must be collected from all retail buyers unless the buyer is an exempt agency. and the buyer’s identification document are all required to be kept in the dealer’s sales file as a record of the out-ofcountry sale. Temporary Tags – Retail Sales. some wholesale buyers may receive some grief from law enforcement if they are driving a vehicle with no plate or temporary tag on it. When selling out of state or out of country. no e-Tag is required. Page 4-28 . Even if the vehicle is being towed or transported by carrier and not requiring a tag to be affixed to the vehicle. All retail sales must be registered in the e-Tag database system. The second requirement is to complete the Texas Motor Vehicle Sales Tax Exemption Certificate for Vehicles Taken Out of State Form 14-312. and signature. the dealer must stamp the title once on the front of the title in an area that does not cover any information and on the back of the title in each and every unused reassignment blank. A copy of the front and back of the stamped title.

Detailed instructions are found on the form. the selling dealer has a responsibility to look to the issue of good faith before accepting an exemption certificate.) had occurred in Texas prior to the out-of-state titling and registration. particularly when trying to prove that Texas use did not occur. However. the Comptroller’s exemption form must be completed. and remains out of state. they may apply for a refund from the Texas Comptroller. other than transportation directly out of the state (i. What if the buyer is a Texas dad who is buying the vehicle for his OU son who is driving the vehicle immediately to Oklahoma? The Texas exemption is predicated on exclusive use out of state. the exemption would apply. the exemption should be sought as soon as possible. and sent to the Comptroller. Nevertheless. Once Customs stamps the titles. signed.. In such a case. i.” If the buyer registers the vehicle in their state later. and the dealer would then have reason to question that the transaction involves a person taking the vehicle out of state for exclusive use. etc. In fact there Page 4-29 . the dealer would typically collect the tax and then the purchaser would need to seek a refund from the Comptroller. Handling Titles. titles and registers the vehicle in his own name outside Texas and then brings it back into the state at some point. It is always a good idea to get identification from your buyer. Again. who presumably is also a Texas resident. Even in that case.e. if the vehicle is brought back into Texas at some point. no other use. If you have a buyer that shows up with Texas identification and has no reason for an exemption other than he plans on registering elsewhere. because exemptions must be narrowly construed and must be proved by clear and convincing evidence. The use will not be exclusively outside Texas. but 3 months or 3 weeks later after their Texas summer vacation is over? The motor vehicle tax is a “use tax” not a sales tax and if the vehicle is being used in Texas for any length of time. inasmuch as the person will need to prove that no use. then he should pay the Texas tax at the time of purchase. There is a second consideration in this scenario. there are always the “what if” questions. Taxes. and refuses to sign the Comptroller’s form which has a felony for perjury admonition. Customs requires that the titles accompany the vehicles whether with a Bill of Lading or other documents. This can become a harder thing to demonstrate with the passage of time. you probably should err on the side of caution and collect the tax from him. with good faith in question. A Texas home address or a Texas driver’s license is a typical “red flag” that would alert a dealer to the possibility that a motor vehicle is being purchased for Texas use. This would hold true even if the son. other than being immediately removed. if the vehicle is going out of state or out of country. As stated above. you must give the title papers to the buyer within 20 county days of the sale for registering in the other state. If Oklahoma tax had been paid at the time of Oklahoma registration.e. then Texas tax is due. What if the buyer is not taking the vehicle immediately. they are returned to the owner of the vehicle. When the father purchases the vehicle. If vehicles are going out of the country. registration and exclusive use. As long as the vehicle is titled and registered out of state. then the Comptroller would allow a credit for the Oklahoma tax toward the Texas tax. having taken the vehicle directly out of state for titling. then the tax is due. If the vehicle is going out of state.d. if the son will be attending school in Oklahoma but driving home to Texas on occasion. The Comptroller defines this as ‘no use of the vehicle in Texas other than the immediate transportation of the vehicle out of the state. such as vacation travel.

For out-of-country sales: 1. inform your buyer he needs a tag from his state if he plans on driving vehicle back. For a retail sale. Give the title paperwork to the buyer within 20 working days. Obtain the buyer’s photo identification issued by the jurisdiction where the buyer resides. Either collect the MV tax or get the Comptroller’s exemption form signed. Page 4-30 . For a retail sale. 5. 4. For a wholesale transaction. see Occupations Code §2305. 2.004. For a wholesale transaction. 3. Stamp title “For Export Only” and give to the buyer. 4. issue a buyer’s tag and collect the $5 e-tag fee. issue a buyer’s tag and collect the $5 e-tag fee. 2. Obtain the same identification you require for in-state sales. In summary. Either collect the MV tax or get the Comptroller’s exemption form signed. Title must accompany vehicles for Customs. 3. inform your buyer he needs a tag from his country if he plans on driving vehicle back.are other laws out there that require identification of the buyer to be obtained and kept in records. 5. for out-of-state sales: 1.

Tags and receipts are preprinted by dealer with the assigned number. May be used on a loaner to a customer while vehicle is being repaired Issued to a retail purchaser Only one plate is issued for display on vehicle and must be displayed and properly secured in rear plate holder. Dealer required to enter all info into E-Tag database within 24 hours of resuming Internet service. INTERNET DOWN TEMP TAG & RECEIPT USED when Internet is down as an alternate Buyer’s tag. reconditioning.E-Tag Dealer Plate & Tag Usage DEALER’S METAL PLATE DEALER OR CONVERTER’S TEMP TAG - BUYER’S TEMP TAG & RECEIPT Uses: 1) Vehicle demonstration 2) Personal use 3) Only on vehicles dealer is licensed to sell Uses: Vehicle demonstration Transit from dealer to dealer. Buyer and vehicle info is hand-printed by the dealer. auction. etc. MUST have current inspection sticker CANNOT display signs on vehicle CAN be displayed on independent dealer vehicle carrying load CANNOT be used for carrying a load UNLESS vehicle is carrying another vehicle with a temp tag from same dealer on the way to or from the auction MUST have current inspection sticker MUST be displayed and properly secured in rear plate holder MUST keep Buyer’s Tag Receipt in vehicle until registered Cannot be used by dealership personnel for personal use If tag is stolen or lost. replacement is reprinted with original expiration date MUST be displayed and properly secured in rear plate holder Does NOT need current inspection sticker CAN display signs and carry load on vehicle CANNOT display signs on TAG is good for 60 calendar days (Effective 9-1-2009) vehicle TITLE must be in name of or assigned to dealership Awaiting Language for New Law 3) Only on vehicles dealer is licensed to Valid from 1 to 60 days More than one tag may be issued to any agent but only one tag may be assigned to any specific vehicle at a time TITLE must be in name of or assigned to dealership Page 4-31 Dealer is required to apply for title and registration within 20 working days of the date of sale or 45 calendar days if Seller financed. Same requirements and uses as Buyer’s Temp Tag .

A SAMPLE METAL DEALER PLATE LOG: PLATE # VEHICLE MODEL VEHICLE VIN # DATE ISSUED DATE RETURNED NAME OF DRIVER Dealers with a large amount of plates may also want to add columns for dates the stickers expire and a signature line for the driver of the vehicle. Page 4-32 .

Dealer agrees that it will offer the herein described vehicle for sale on its legally licensed premises under the terms and conditions agreed to between the Owner and Dealership as set out herein.CONSIGNMENT TO DEALERSHIP The undersigned owner of the motor vehicle described herein. Dealership understands that it is responsible for registering and titling the vehicle and paying any Vehicle Inventory Tax due on the vehicle. hereby certifies that he has delivered on consignment to the dealership named below a vehicle that he legally owns and that said dealership has the owner's authority to offer such vehicle for sale at the dealer’s licensed location. Owner further states that he is not a wholesale dealer. Owner certifies and guarantees that the vehicle is free and clear from any liens other than that may appear on the face of the title. Owner has shown the dealer the title to the vehicle. or that he has disclosed herein. VEHICLE Make: _____________ Year Model: _______ Body Style: ____________________ License Number: _________ Vehicle Identification Number: ______________________ DEALER Name: _______________________________________________________________ Licensed Address: ________________________________________________________ Phone Number: ________________ Fax: ________________ GDN: _______________ OWNER Name: ________________________________________________________________ Address: ________________________________________________________________ Daytime Phone Number: _____________ Evening Phone Number:__________________ TERMS OF CONSIGNMENT: This consignment begins on _______________ and terminates on __________________ Sales price (set amount or minimum) _________________________________________ Consignee to pay owner ___ days after the sale Agreed commission (set amount. Dealership further agrees that it will pay the owner any amounts owed from the sale no later than ______ days from the date of sale. percentage or over net) __________________________ Fees owner agrees to pay (if any): ____________________________________________ Liens (if any): ____________________________________________________________ ___________________________________ Signature of Owner _________________________________ Signature of Dealer Page 4-33 .

Ask the dealer to put all promises in writing. Ask the dealer for a copy of the warranty document for a full explanation of warranty coverage. Ask for details as to coverage. price and exclusions. SEE THE BACK OF THIS FORM for important additional information. The dealer will pay _____% of the labor and _____% of the parts for the covered systems that fail during the warranty period. Under state law. deductible. WARRANTY FULL LIMITED WARRANTY. state law “implied warranties” may give you additional rights. ________________ __________________ ______________ __________________ VEHICLE MAKE MODEL YEAR VIN NUMBER ___________________________________ DEALER STOCK NUMBER (optional) WARRANTIES FOR THIS VEHICLE: AS IS-NO WARRANTY YOU WILL PAY ALL COSTS FOR ANY REPAIRS. exclusions. Keep this form. Page 4-34 . “implied warranties” may give you even more rights. The dealer assumes no responsibility for any repairs regardless of any oral statements about this vehicle. SYSTEMS COVERED: _________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ DURATION: ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ SERVICE CONTRACT.BUYERS GUIDE IMPORTANT: Spoken promises are difficult to enforce. and the dealer’s repair obligations. A service contract is available at an extra charge on this vehicle. If you buy a service contract within 90 days of the time of sale. PRE PURCHASE INSPECTION: ASK THE DEALER IF YOU MAY HAVE THIS VEHICLE INSPECTED BY YOUR MECHANIC EITHER ON OR OFF THE LOT. including a list of some major defects that may occur in motor vehicles.

Removal of this label before consumer purchase (except for purpose of test-driving) is a violation of federal law (16 C.) Lining or pad thickness less than 1/32 inch Power unit not operating or leaking Structural or mechanical parts damaged Steering System Too much free play at steering wheel (DOT specs.) Does not stop vehicle in straight (DOT spec. corrective welds. excluding normal seepage Cracked or damaged case which is visible Abnormal noise or vibration caused by faulty transmission or drive shaft Improper shifting or functioning in any gear Manual Clutch slips or clatters Differential Improper fluid level or leakage. battery.) Power unit belts cracked or slipping Power unit fluid level improper Suspension System Ball joint seals damaged Structural parts bent or damaged Stabilizer bar disconnected Spring broken Shock absorber mounting loose Rubber bushings damaged or missing Radius rod damaged or missing shock absorber leaking or functioning improperly Tires Tread depth less than 2/32 inch Sizes mismatched Visible damage Wheels Visible cracks. Page 4-35 .R. generator.) Hoses damaged Drum or rotor too thin (Mfgr. specs.Below is a list of some major defects that may occur in used motor vehicles.) Free play in linkage more than ¼ inch Steering gear binds or jams Front wheels aligned improperly (DOT specs. 455). or starter Fuel System Visible leakage Brake System Failure warning light broken Pedal not firm under pressure (DOT spec. excluding normal seepage Cracked or damaged housing which is visible Abnormal noise or vibration caused by faulty differential Cooling System Leakage including radiator Improperly functioning water pump Electrical System Battery leakage Improperly functioning alternator.F. or rusted through Dog tracks-bent or twisted frame Engine Oil leakage. Frame & Body Frame-cracks. damage or repairs Mounting bolts loose or missing Exhaust System Leakage Inoperable Accessories Gauges or warning devices Air conditioner Heater & Defroster DEALER ADDRESS SEE FOR COMPLAINTS IMPORTANT: The information on this form is part of any contract to buy this vehicle. excluding normal seepage Cracked block or head Belts missing or inoperable Knocks or misses related to camshaft lifters and push rods Abnormal exhaust discharge Transmission & Drive Shaft Improper fluid level or leakage.) Not enough pedal reserve (DOT spec.

ILLUSTRATION OF WHERE TO PLACE "FOR EXPORT ONLY" STAMP FOR EXPORT ONLY On the front of the title where no information is covered Jose Diaz 123 Matamoras Nuevo Laredo Mexico 87. Texas Autos P67894 Jose Diaz FOR EXPORT ONLY P12345A FOR EXPORT ONLY P12345A FOR EXPORT ONLY P12345A Page 4-36 On the back of the title in any blank .654 1/22/14 John Doe.

DETAILS All vehicles that are titled are required to have a serial number or vehicle identification number (VIN). please contact your local Vehicle Titles and Registration Division Regional Office.1. or the customer chooses to obtain an assigned serial number(non-titled). If the owner of a non-titled trailer or semitrailer chooses to not have a serial number assigned. The Motor Vehicle Title Manual has been revised to reflect this information and will be distributed at a later date. the attached procedures should be followed in order to obtain an assigned serial number.000 pounds or less. unless the owner chooses to apply for a title for a farm semitrailer that has a gross weight of over 4. a Form VTR-68-A executed by law enforcement is not required to be submitted with the application for registration. semitrailer. You may also call me at (512) 465-7570. 2005 Registration and Title Bulletin #094-05 Policy and Procedure TO: SUBJECT: All County Tax Assessor-Collectors Assigned Serial Numbers for Homemade/Shopmade Trailers and Semitrailers 1. Sincerely.000 pounds and not more than 34. CONTACT If you have any questions or need any additional information. Thank you very much.September 2. or farm semi-trailer for identification purposes and to aid in the recovery of their property in the event that it is stolen. farm trailers and farm semitrailers to your offices and customers. PURPOSE To clarify the requirements for owners of homemade or shopmade trailers and semitrailers to obtain an assigned serial number. Interim Director Vehicle Titles and Registration Division Page 4-37 . If an assigned serial number is required (titled).000 pounds An owner may choose to have a serial number assigned to a non-titled trailer. homemade or shopmade: • trailers that have an empty weight of 4.000 pounds or less • semitrailers that have a gross weight of 4.000 pounds or less • farm trailers or farm semitrailers that have a gross weight of 34. farm trailer. An assigned serial number is not required for non-titled. COUNTY ACTION Please disseminate this information on the requirements for assigned serial numbers for non-titled trailers. semitrailers. Mike Craig.

the . to the owner. must be completed.PROCEDURES FOR OBTAINING AN ASSIGNED SERIAL NUMBER FOR A HOMEMADE/SHOPMADE TRAILER OR SEMITRAILER • A Form VTR-68-A. Application for Assigned or Reassigned Number. • Once approved and an assigned serial number is issued. The top portion must be completed by the owner and the owner’s signature must be notarized. the VTR Regional Office will forward a copy of the completed Form VTR-68-A and Form VTR-68-N. Motor Vehicle Theft Service. • After the assigned number has been die Form VTR-68-N. • The owner must mail or take the completed Form VTR-68-A. Notice of Assigned Number or Installation of Reassigned Vehicle Identification Number. National Crime Insurance Bureau. The bottom portion must be completed by law enforcement (a member of the Department of Public Safety. must be signed by the owner. acceptable evidence of ownership. • The owner must then die stamp the assigned serial number on the trailer or semitrailer on the right side of a permanent part of the frame forward of the axle or tandem assembly. Page 4-38 stamped on the vehicle. or an established vehicle theft unit of a Texas law enforcement agency). a $2 fee. • If the trailer or semitrailer is being titled. the copy of the Form VTR-68-A and the completed Form VTR-68-N must be submitted to the County Tax Assessor-Collector’s office with the application for title and all supporting documents. and a photograph of the trailer or semitrailer to their local Vehicle Titles and Registration Division (VTR) Regional Office.

the U. including light-duty vans. the major mechanical and electrical systems on the car. an employee of the lessee. and offers a compliance checklist. that oral promises are difficult to enforce. and a frontal area of less than 46 square feet. The Used Car Rule applies in all states except Maine and Wisconsin. Exceptions to the Rule are: motorcycles. This requirement also applies to used vehicles for sale on your lot through consignment. what percentage of the repair costs a dealer will pay under warranty. and Agricultural equipment. The Buyers Guide A disclosure document that gives consumers important purchasing and warranty information. demonstrators. If you conduct a used car transaction in Spanish. even if the car is not fully prepared for delivery.000 pounds.500 pounds. You must post a Buyers Guide before you "offer" a used vehicle for sale. In fact. light-duty trucks. Previously titled or not. as are businesses that sell vehicles to their employees. The Rule applies in the District of Columbia. dealers and the auction company must comply. Page 4-39 . any vehicle sold for scrap or parts if the dealer submits title documents to the appropriate state authority and obtains a salvage certification. to keep the Buyers Guide for reference after the sale. and program cars that meet the following specifications: a gross vehicle weight rating (GVWR) of less than 8. is considered a used vehicle. or other agreement. and Lessors who sell a leased vehicle to a lessee. you must post a Spanish language Buyers Guide on the vehicle before you display or offer it for sale. or a buyer found by the lessee. The Rule does not apply at auctions that are closed to consumers. and American Samoa.S. car dealers who sell more than five used vehicles in a 12-month period must comply with the Rule. power of attorney. Puerto Rico. a curb weight of less than 6. At public auctions. to get all promises in writing. Banks and financial institutions are exempt from the Rule. as well as some of the major problems that consumers should look out for. This booklet defines the Rule's requirements. and To ask to have the car inspected by an independent mechanic before they buy. A vehicle is offered for sale when you display it for sale or let a customer inspect it for the purpose of buying it. Guam. the Buyers Guide tells consumers: whether the vehicle is being sold "as is" or with a warranty. Virgin Islands.A Dealer's Guide to the Used Car Rule Most car dealers who sell used vehicles must comply with the Federal Trade Commission's (FTC's) Used Car Rule. These two states are exempt because they have similar regulations that require dealers to post disclosures on used vehicles. any vehicle driven for purposes other than moving or test driving. explains how to prepare and display the Buyers Guide.

Also fill in the name (or position) and the telephone number of the person the consumer should contact with complaints. Optional Signature Line You may include a signature line on the Guide and you may ask the buyer to sign to acknowledge that he or she has received the Guide. fill in the vehicle make. You can hang the Guide from the rear-view mirror inside the car or on a sideview mirror outside the car." This language can be preprinted on the form. If you offer the vehicle with an express warranty. This means it must be in plain view and both sides must be visible. Page 4-40 . For example. some states may require you to eliminate implied warranties by using special language and/or a document other than the Guide. If you're not sure which version of the Buyers Guide you should use or if you have questions about state requirements. If state law allows it. Warranties required by state law must be disclosed in this section. you must check the box next to the heading "Warranty" and complete that section of the Guide." As Is-No Warranty. Implied Warranties Only. Warranty Information The Buyers Guide has two versions: One says "As Is-No Warranty. you must include a disclosure near it that says: "I hereby acknowledge receipt of the Buyers Guide at the closing of this sale. Vehicle Information At the top of the Guide. If you opt for a signature line. contact the FTC or your state Attorney General. and you choose not to offer a warranty — written or implied — you must use the "As Is" version and check the box next to the heading "As Is-No Warranty" on the Guide. model. Your state Attorney General can tell you about state warranty requirements. you must use the "Implied Warranties Only" version and check the box next to the "Implied Warranties Only" heading if you don't offer a written warranty. In other states "as is" sales are allowed only if specific action is taken or certain language is used. A Guide in a glove compartment. You also can place it under a windshield wiper. Write in a dealer stock number if you wish. model year. State Law: In some states. Warranty." the other says "Implied Warranties only. In states that limit or prohibit the elimination of implied warranties. Dealer Information On the back of the Guide. You may use a rubber stamp or preprint your Guide with this information. trunk or under the seat is not conspicuous because it is not in plain sight. fill in the name and address of your dealership. You may remove the Guide for a test drive. but you must replace it as soon as the test drive is over. use of the "As Is-No Warranty" Buyers Guide may be legally sufficient to eliminate implied warranties. and vehicle identification number (VIN).The Buyers Guide must be posted prominently and conspicuously on or in a vehicle when a car is available for sale. The signature line and the required disclosure must appear in the space provided for the name of the individual to be contacted in the event of complaints after the sale. The Guide also can be attached to a side window.

you must specify each system that's covered by the warranty. you may disclose this fact by checking the "Warranty" box and including this disclosure in the "systems covered/duration" section: "MANUFACTURER'S WARRANTY STILL APPLIES." The disclosure must be stated in the exact language quoted above. you must state the length of the warranty for each system. For example. What Percentage of Costs Does the Warranty Cover? Fill in the percentage of parts and labor costs covered by the warranty in the spaces provided. even for services like removing and reinstalling a system covered by the warranty. Where Should Negotiated Warranty Changes Be Included? If you and the consumer negotiate changes in the warranty. explain the terms of your warranty on the Buyers Guide. Such coverage is considered a service contract. Consult the manufacturer's warranty booklet for details as to warranty coverage. In the left hand column. The Rule prohibits the use of shorthand phrases such as "drive train" or "power train" because it's not always clear what specific components are included in the "power train" or "drive train. However. if you first offer Page 4-41 . Warranty service must be provided free of charge when necessary. put an asterisk next to the number and explain the deductible in the "systems covered/duration" section. and another to list the length of the warranty for each system. you must cross out the "50 percent" disclosure and write in "100 percent. The consumer must be able to choose either a replacement or a refund if the vehicle can't be repaired after a reasonable number of tries. service location. What if the Manufacturers Warranty Still Applies? If the manufacturer's warranty hasn't expired. The consumer is not required to take any action to receive service. Using phrases such as "balance of factory warranty" are not sufficient. The manufacturer's original warranty has not expired on the vehicle. If all systems are covered for the same length of time." Similarly. but agree to cover 100 percent of the cost of parts and labor after negotiating with the customer. if you offer to cover 50 percent of the cost of parts and labor for certain repairs.Is the Warranty "Full" or "Limited"? For a warranty to be considered "full:" Warranty service must be provided to anyone who owns the vehicle during the warranty period. "*A $50 deductible applies to each repair visit. you may not check the "Warranty" box. The warranty is considered "limited" if any of these conditions don't apply. you may check the "warranty" box if you pay for coverage from the manufacturer and the consumer doesn't have to pay anything more than the price of the vehicle to get the coverage. except to give notice that service is needed." In the right hand column." What Systems Are Covered? For How Long? There's one column to list the systems covered. For example. The length of implied warranties must not be limited. you may state the duration once. the Buyers Guide must reflect the changes. If the consumer must pay to get coverage under the manufacturer's warranty. If you provide a warranty in addition to the unexpired manufacturer's warranty. If a deductible applies to repairs made under the warranty. etc. Service must be rendered after notice unless the warrantor can demonstrate that it is reasonable to require consumers to do more than give notice.

DC 20580." The Warranty Act contains provisions that establish consumers' rights with respect to written warranties. Check with your Attorney General or state insurance commissioner to find out if your state regulates service contracts as insurance. The Guide must reflect all final changes. or if the manufacturer's warranty still applies." However. your written warranty and the Buyers Guide must be two separate documents. you also must comply with the Magnuson-Moss Warranty Act and other FTC Rules. including the "Warranty Disclosure Rule.the vehicle "as is" but then agree to provide a warranty. The Warranty Disclosure Rule requires that you disclose certain information about the coverage of your warranty and consumers' rights under state law. You also will find the full text of these publications at www. What Disclosures Should I Make if I Offer a 50/50 Warranty or Another Type of Split Cost Warranty? Split cost warranties are those under which the dealer pays less than 100% of the cost for a warranty repair. you should include the following disclosures in your warranty document: The percentage of the total repair cost you will pay. The percentage of the total repair cost the buyer must pay. upon request. Therefore. Washington.ftc. For example. make sure the buyer signs the Guide that reflects all final changes. This information must be included in a single document that is clear and easy to read. Two publications are available to help you comply with these and other federal regulations on warranties: A Businessperson's Guide to Federal Warranty Law and A legal Supplement to Federal Warranty Law. Federal Trade Commission. Can the Buyers Guide Serve As My Written Warranty? The warranty information you provide on the Buyers Guide is not sufficient to meet the requirements of the Warranty Disclosure Rule. or write: Consumer Response Center. Another type of split cost warranty is one under which the buyer pays a deductible amount and the dealer pays the remaining cost for the repair. the Act prohibits you from eliminating implied warranties when you provide a written warranty. Another federal rule — the FTC's Rule on Pre-Sale Availability of Written Warranty Terms — requires that you display written warranties in close proximity to the vehicle or make them available to consumers. If you include a signature line on your Buyers Guides. If you offer a written warranty. What Do I Have to Give the Buyer At the Sale? You must give the buyer the original or a copy of the vehicle's Buyers Guide at the sale. Both are available from the FTC. If you offer a split cost warranty that requires you to pay a percentage of the repair cost for covered repairs. What About Service Contracts? If you offer a service contract for repairs. Call toll-free 1-877-FTC-HELP (382-4357). you must cross out the "As Is-No Warranty" disclosure and complete the "Warranty" section of the Buyers Guide properly. Page 4-42 . check the box next to the words "Service Contract.gov. before they buy. if your state regulates service contracts as the "business of insurance. This type of warranty includes 50/50 warranties where the dealer pays 50% of the cost for a covered repair and the buyer pays the remaining 50%." you don't have to check this box.

" As a final example. The Guides must be printed in 100% black ink on white paper cut to at least 11" x 7 1/4. For example. type style. you should provide an estimate of the total repair cost before work is started. Information on the window form overrides any contrary provisions in the contract of sale." As another example. do you include the following required disclosure language: I hereby acknowledge receipt of the Buyers Guide at the closing of this sale. Do you give the vehicle's Buyers Guide or a copy to the purchaser at the time of sale and make sure it states the final negotiated warranty coverage accurately? If a sale is conducted in Spanish. Where Can I Get Copies of the Guides? You can get Buyers Guides from business-form companies or trade associations. Dealers offering split cost warranties can require that buyers return to the dealer for warranty repairs. Do you put the following required disclosure in your sales contract: The information you see on the window form for this vehicle is part of this contract. total cost of a repair will be the same price ABC Motors is charged by the outside shop. If the work is done by ABC Motors. your warranty might state: "The total cost of a warranty repair will be determined by adding the dealer's cost for parts to the labor cost. the total cost of the repair will be the same price ABC Motors charges non-warranty customers for the same job. your warranty might state: "If the work is done by an outside repair shop. type sizes. How Am I Doing? Do you complete a Buyers Guide properly for each used vehicle offered for sale? Do you post the Buyers Guide prominently and conspicuously on each used vehicle you offer for sale? If you choose to include a signature line for the buyer's signature. You also can generate them yourself on a computer. do you prepare a warranty document that complies with federal law? Is the warranty document available for examination by potential buyers? Page 4-43 . or you can download the Buyers Guide from the FTC's Web site. and format specified in the Rule. You are not allowed to place any other wording or symbols (including logos) on the Buyers Guide. you must use the wording. You may use colored ink to fill in the blanks. Labor will be billed at a rate of ________ per hour for the actual time required to complete the repair. your warranty might state: "The total cost of a warranty repair will be the retail price ABC motors charges for the same job. If your warranty includes this restriction. This will allow the buyer to decide whether to approve the repair or have the work done elsewhere. however." If your warranty requires buyers to pay a deductible. do you use the Spanish language Buyers Guide? If you offer a written warranty." These requirements cannot be modified in any way. However.How the total cost of the repair will be determined. your warranty document should disclose the deductible amount and the details as to when and under what circumstances the deductible must be paid.

a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and other fraud-related complaints into Consumer Sentinel. The FTC enters Internet. telemarketing. June 2004 Page 4-44 . You also can download these documents from the FTC's website. both documents explain some aspects of the Rule in more detail. As a result. identity theft. and unfair practices in the marketplace and to provide information to businesses to help them comply with the law. TTY: 1-866-653-4261. visit www.gov or call toll-free. 1-877-FTC-HELP (1-877-382-4357). state and local law enforcement officials may have the authority to ensure that dealers post Buyers Guides and to fine them or sue them if they do not comply. Many states have laws or regulations that are similar to the Used Car Rule. and abroad.What If I Don't Comply? Dealers who violate the Used Car Rule may be subject to penalties of up to $11. To file a complaint or to get free information on consumer issues. Some states incorporate the Used Car Rule by reference in their state laws.000 per violation in FTC enforcement actions.ftc. Where Can I Get More Information? If you have questions about the Used Car Rule. contact the FTC and request a free copy of the Rule or staff compliance guidelines for the Used Car Rule. deceptive. The FTC works for the consumer to prevent fraudulent.